AUD/USD consolidates post-RBA gains above 0.7600

The rates on-hold policy maintained by the RBA keeps the AUD bulls underpinned, as the AUD/USD pair enters a phase of upside consolidation heading into early Europe.

The AUD/USD pair moved-off three-day tops reached at 0.7633, and now wavers around 0.7620 region, having reversed a knee-jerk dip to 0.7594 following the RBA announcement. At its policy decision today, the RBA left its cash rate unchanged at 1.5% and maintained neutral bias on the interest rates outlook for the coming months.

Further upside appears to lack momentum, as falling iron-ore prices continue to weigh on the resource-linked AUD.  Iron-ore prices dropped fresh one-month lows on the back of technical selling and rising inventories.

Also, with March Fed rate hike chances standing at nearly 90%, a fresh bout of buying in the greenback cannot be ruled out, which may keep a lid on AUD/USD in the short-run.

AUD/USD Levels to watch   

At 0.7599, the immediate resistance at 0.7650/56 (psychological levels/ 20-DMA) above which gains could be extended to the next hurdle located 0.7701/10 (Mar 1 & Feb 27 high) and 0.7743/50 (Feb 23 high/ psychological levels). On the flip side, the pair finds the immediate support located at 0.7542 (200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7523/20 (Jan-mid lows) and below that 0.7507/00 (Jan 27 low/ round number).